Cost of Living in Spain

Accommodation

Houses and apartments in Spain tend to be compact. Thanks to a warm and sunny climate, people spend a lot of time outdoors. They like to sunbathe on the beach and spend time with friends on open terraces of bars and cafes.

These are the locations with the highest rental and purchase property prices:

• Large cities

• Catalan coast

• Some other Northern coastal areas

The good news is the small Southern towns (think of Malaga) are popular among the expat community too and have a very decent infrastructure. In lesser-known locations, you might be able to rent an apartment for as little as €500 per month and find one for sale for $100,000 or even less.

Let's have a look at the average cross-country statistics:

Now, let's scrutinize the price range of apartments and rooms for rent in various locations:

Plus, it's essential to factor in the utility bills. Water, electricity and fiber optic broadband will cost you approximately €100 per month. The cell phone plan is not included — it will require an additional €15-20 per month.

Expenses Related to Obtaining and Renewing Residence Permit

Once you've qualified for the local residence, it will involve the following expenses:

• Authorizing it and renewing it for the first time — from around €11 to €22, there are no discounts for family members

• Work authorization for employed and self-employed individuals — from roughly €204 to €408

• Further residence renewals and modifications as well as extensions of work authorization — from €82 to €204

• Foreigner's identity number — around €10

• Fee for getting the local nationality — approximately €104

• Fee for getting the local ID — €12

These prices tend to increase over time.

Healthcare and Insurance

After relocation to Spain, foreigners can either buy private health insurance or sign up for the national healthcare plan. If you get employed in this country, you and your family members will be likely to automatically get access to free nationwide healthcare services because you'll be paying the contributions that fund this system.

The local public healthcare system is one of the most advanced in the EU. You should be ready to pay for some prescriptions, dental care, eye care and orthopedic equipment, while most services will be provided at no cost without compromising on quality.

For retirees aged younger than 65, the monthly cost of using the free public healthcare system is €60. Retirees aged 65+ pay €157 every month. Elderly individuals can get private insurance too, either instead the access to public healthcare services or as an addition to it.

The average cost of private health insurance falls within the range of €50 to €200 per month. The older you are, the more extensive the coverage and the longer the duration of the insurance, the higher the price. If you're aged 55 and have no serious health issues, you might be able to pick a plan for as little as €52 per month, including some dental services. People in their early 60s are expected to pay around €111 for the same scope of support.

When a medical professional visits you at home, it will cost you roughly €60. A supply of cold medicine that will last you for a week costs approximately €6.

Taxation

Check whether your homeland has signed a double taxation treaty with Spain. If yes, you won't need to pay taxes in both territories.

If you spend less than 183 days per year in Spain, you won't become a local tax resident. You won't need to pay the taxes here for your income generated abroad. However, you might be considered a local resident if you run a business in this country or if all your family lives here.

For non-residents, a flat tax rate is usually applied:

• Income tax — 19% for citizens of the European Union or the European Economic Area, 24% for all the others

• Capital gains from transferred assets — 19%

• Dividends and investment — 19% (there are exceptions)

• Royalties — 24%

• Pensions — from 8% to 40% (it's a progressive tax rate)

Non-residents are exempt from deductions and allowances. Be ready to pay a property tax for any real estate that you own here, regardless of whether you rent it out or not.

Being a local resident, you'll be obliged to pay the income tax here and submit a tax return if you tick at least one of the following boxes:

• Declare your Spanish tax residence for the first time

• Earn over €1,000 per year on rentals

• Earn over €1,600 per year on savings and capital gains

• Earn over €22,000 per year as an employed professional

• Run a business or are self-employed in Spain

Don't forget to declare your foreign assets that cost over €50,000.

For residents, the tax rates are progressive:

• Tax on employment — from 19% to 47%

• Income tax on savings — from 19% to 26%

• Capital gains tax — from 19% to 26%

• Inheritance and gift tax — from 1% to 7%

• VAT — from 4% to 21%

• Corporate tax — from 10% to 25%

• Wealth tax — up to 3.5%

The numbers can vary from one region to another.

Consult your tax advisor to find out about deductions and allowances that you can be eligible for. If you're married, you may want to pay the taxes together with your better half or separately, depending on which is more profitable for you. This opportunity is valid for both heterosexual and same-sex marriages.

Food

Spain is world-famous for the taste and quality of its local produce. The high season for fruits and vegetables lasts nearly half a year. The meat is delicious. Seafood in seashore areas is not only extremely appetizing but also much cheaper than in the central part of the country. If you're used to yogurts, cereals and other items sold in Europe or the US, you'll be able to find many of them in international chain stores.

Here are the prices of the most common products:

Eating Out

Spaniards love to eat out and they don't need to break the bank to do it. A fast food meal to eat on the go will cost you approximately $7.85. If you want to take your better half to dinner with a bottle of wine, $40 can be enough for two. Of course, there are a lot of premium restaurants in the country that you can visit for special occasions.

The most cost-efficient option for having a copious meal is the lunch menu. Its average price is $15 and it consists of at least two courses:

• Vegetables, soup, paella or salad to start with

• Fish, meat or a vegetarian meal to carry on

• Bread

• Beverage (most likely, you'll be allowed to have a glass of wine or beer)

• Coffee or dessert

0.5 L or 16 fl oz of beer in a pub will cost you around $3, a cup of cappuccino in a cafe — around $2 and 0.5 L or 16.9 fl oz of Coke or Pepsi — around $1.85. In a bar, don't forget to order "tapas", which is a small portion of a snack. It usually costs around $2 — or you may even get it for free when you order a drink.

Entertainment

A monthly gym membership will cost you around €38. If you want to rent a tennis court for one hour on a weekend, be ready to pay around €12.5. A cinema ticket usually costs around €8 and its theater counterpart around €17.

Spain is a good place to indulge in shopping. A pair of branded jeans or a pair of mid-range running shoes by a major brand will cost you €70, on average. A pair of men's leather business shoes will have a price tag of around €85 and a summer dress in a chain store — around €30.

Transportation

The transportation expenses differ from one location to another but not too drastically. Here are the average prices across the country:

The public transport system is excellent. In most locations, you can easily do without a car. Retirees aged 60+ can often benefit from ticket discounts.

Education

The cheapest nursery in this country costs €150 per month. If you send your kids to a free kindergarten and school, people around them will be speaking Spanish. If you want your children to get their education in English, which can broaden their career opportunities, be ready to pay at least €5,000 per year for an international school.

Here are the approximate costs of higher education, per academic year, and the typical durations of the programs:

Each consecutive enrollment costs more than the previous ones. The prices for international students who arrive from outside the EU tend to be higher than for those who are residents of this region. In private universities, the yearly tuition fee varies from €6,000 to €20,000.

Average Salary

According to the 2022 statistics, the average salary in this country was €2,710 gross per month or €32,520 per year. Only 25% of the population earned over €7,080 per month. The other 25% of the population failed to earn even €1,600 per month.

In Sweden, Germany and the Netherlands people earn 80-90% as much and in France — as 60% as much as in Spain. Italians have more or less the same level of income as Spaniards. In Greece and Portugal, residents earn 40-50% less.

By the EU standards, Spanish salaries are mid-range. But the cost of living here is much more affordable than in the countries with higher levels of income.

The Spanish authorities state that it's enough to have from €820 to €1,100 per month to sustain yourself. The lowest interprofessional wage is €1,167 gross per month.

Spain needs more expats with profound expertise in the following fields:

• Medicine

• Account management with multilingual capabilities

• Business development

• Computer engineering

• Computer programming

• Data science

These professionals can expect to receive highly competitive salaries. Non-EU expats tend to earn more than their EU counterparts. Local companies hire them only if they can't find specialists with the required expertise in their homeland. This is typical of top managers, business directors and scientists who receive working visas that are otherwise very hard to obtain.

Approximate Monthly Budget

Let's imagine that you're relocating to Spain together with your partner and you don't bring pets or kids with you. Here is the table with your approximate monthly expenses in a mid-sized city:

You should be able to enjoy a comfortable life if the two of you earn around €2,000 or $2,400 per month.

If you live alone, make $20,000 per year and don't need to pay rent or mortgage, it should be pretty much enough. You'll be able to dine out and have fun with this income.

Comparison to Other Countries

Finally, let's compare the cost of living in Spain vs USA, Canada, UK, Italy and Portugal:

FAQ

Read also:

• Property taxes in Spain for non-residents
• Rental Income Tax Spain
• Residence permit in Spain for financially independent
• Mortgage in Spain for non residents